DHL survey: Position of Czech exporters is getting worse

Prague, Oct 9 (CTK) - Export confidence of Czech companies is falling, exporters expect stagnation in the total volume of exports from the Czech Republic, and the EU and Russia stay as key export territories, according to the results of export survey DHL made by company GfK Czech.

Over 300 reps of the most important exporters took part in the survey this year.

A full 50 percent of the addressed companies expect exports to stagnate, 11 percent more than in the autumn of 2010. In the coming twelve months, 39 percent of the respondents expect growth in export volume, 5 percent less than last year.

The long-term export confidence index, that is the difference in the percentage of the positive and negative answers, still moves in the positive territory but it fell by 2 percentage points year on year. Against 2010, the index decreased from 44 to 34 points.

"The development of the index confirms that uncertainty of exporters and concerns about further economic development stay. The index is still relatively high but another fall came against last year and we can probably expect further slowdown in growth in exports. This is given in particular by uncertain economic development on our key markets," said Ludek Drnec, sales director of company DHL Express.

The survey also shows that only 11 percent of exporters believe that the euro can be kept in all the current euro-zone member countries. Another 69 percent think the euro will survive but anticipate a drop in the number of the euro zone's members.

From the geographic point of view, EU countries remain as the key market for 94 percent of the exporters. Compared with the past years, the number of companies exporting to countries outside of the EU grew significantly. Russia and other former Soviet countries are the most important area. Expectations are growing also as regards China and Southeastern Asia.

"This year's results of the export survey show that the economic crisis still influences client behaviour, in particular as regards cost saving. However, export companies in the current situation try to orient towards new markets and trading partners. Their expectations grow in particular by Southeastern Asia," said Richard Hospodsky, director of expert services of company GfK.

Over two thirds of the respondents believe that conditions for exports in the Czech Republic are roughly the same as in the previous years. More than a half of them also think that exports were boosted the most by gaining new trading partners, technological innovations and investments into advertising.

The highest risks to Czech exports are changes in the crown's rate (22 percent), higher costs (10 percent) and tough foreign competition (6 percent).

Export survey DHL monitors the opinions of the most important Czech exporters on development in the Czech Republic and abroad. Its aim is to learn about trends, expectaions and opinions of exporters on export development and key markets.